Spanish banks eye Fosun’s stake sale in BCP

Spanish banks are watching the possible sale of Fosun’s 20.45% stake in Millennium BCP, in a potential deal that could reopen cross-border banking consolidation in Portugal. Any new Spanish move into BCP would affect ownership in one of Portugal’s largest listed banks and could test the government’s stance on foreign concentration in the sector.

Spain’s Cinco Días, citing sector sources, identified BBVA and CaixaBank as the most natural potential buyers. Fosun is assessing options to dispose of its holding in BCP as part of a plan to reduce debt through asset sales. According to Expresso, the stake is worth about €2.7 billion.

According to Cinco Días, BBVA could see BCP as a way to offset the failure of its bid for Sabadell and gain meaningful scale in Portugal, where its presence is limited. CaixaBank, which already operates in Portugal through BPI, was also cited, although the Spanish bank’s chief executive said in its latest results presentation that it was not pursuing further acquisitions in the Portuguese market.

Any increase in Spanish banking ownership in Portugal would likely face resistance from the Portuguese government. During the Novobanco sale process, Finance Minister Joaquim Miranda Sarmento said it would be preferable for Spanish banks not to expand further, arguing that concentration and dependence should not increase. Banks with Spanish capital account for about 40% of Portugal’s lending market, based on APB (Portuguese Banking Association) data for June 2024.

Originally published at Eco.pt